SNB Jordan is on the wires speaks in general terms: Central bank independence is crucial to fight inflation effectively central banks could face political pressures to slow down or postpone interest rate hikes to tackle inflation central banks more politically vulnerable as inflation rises Comments outline reasons why central banks in general need to remain independent. Will be on alert for any comments on monetary policy. [embedded content]...
Read More »How did chips go from epic shortage to massive deflationary pressure? Big IMF downgrades tell us.
These were once the very symbol of 2021 "inflation." A shortage of semiconductors had been so severe and pervasive, it seemed like nearly every consumer price increase could be traced back in part to chips. Today, massive inventory that is proving difficult to sell as demand worldwide plummets. It was transitory after all. Even the IMF can see it coming, though its models will need even more and even bigger downgrades first. Eurodollar University's Money & Macro Analysis...
Read More »Ethereum bis Dezember auf 2.000 US-Dollar prognostiziert
Das Jahr lief generell nicht gut für den Markt, doch besonders Ethereum ließ kräftig Federn. Fast drei Viertel seines Wertes hat der ETH in diesem Jahr verloren. Laut Analysten wird es jedoch zum Jahresende wieder nach oben gehen – 2.000 US-Dollar ist die konkrete Prognose für den Kurs. Ethereum News: Ethereum bis Dezember auf 2.000 US-Dollar prognostiziertDie Analysten gehen nicht nur von einem Dezember-Kurs bis auf 2.000 US-Dollar aus, sondern sprechen auch von...
Read More »Inflation, High Inflation, Hyperinflation
The word “inflation” is heard and read everywhere these days. However, since different people sometimes have very different understandings of inflation, here is a definition: Inflation is the sustained rise in the prices of goods across the board. This definition conveys that inflation means that the increase in prices of goods is not just a one-off but permanently; and that not just some goods prices go up, but all. How does inflation arise? The economists have two...
Read More »Bank of England Steps in to Buy Inflation-Linked Bonds for the First Time
Overview: The dollar continues to ride high. It reached its highest level against the yen since the recent intervention. The Canadian dollar has fallen to its lowest level in two-and-a-half years and the New Zealand dollar is approaching the 2020 extreme. The greenback is firmer against all the major currencies but the Swiss franc, and against nearly all the emerging market currencies today. Equities have been sold. Japan, South Korea, and Taiwan re-opened after...
Read More »Switzerland shares bank details with Nigeria for first time
Five additional countries, including Nigeria, now benefit from an automatic exchange of banking information with Switzerland, taking the total to over 100 for the first time. On Monday, the Swiss Federal Tax Administration revealed that it had provided details of around 3.4 million bank accounts held by foreigners (or those with a fiscal residence abroad) to their countries of origin or residence this year. In return, it had received information on banking...
Read More »Crypto and the Environment
An intrusive intervention into the crypto market similar to what the EU has recently provided is not a sure promise of a Pareto efficient result. The cryptocurrency market has evolved at a rapid pace over the course of its short lifespan. With its community and users growing steadily. They offer the potential for new choices to be made in a field long dominated by government monopolies. They are a real financial alternative and might provide intense competition...
Read More »The Fed’s Real Mandate
The Federal Reserve has a legal dual mandate to minimize unemployment and price inflation. The current “dual” between the two mandates is to reduce price inflation by increasing interest rates to increase unemployment and kill businesses to choke off aggregate demand. This has been the most important economic and investment issue this year and this dual minimization procedure has dominated Fed policy for at least three-quarters of a century. This is odd given that...
Read More »Weekly Market Pulse: The Real Reason The Fed Should Pause
The Federal Reserve has been on a mission lately to make sure everyone knows they are serious about killing the inflation they created. Over the last two weeks, Federal Reserve officials delivered 37 speeches, all of the speakers competing to see who could be the most hawkish. Interest rates are going up they said, no matter how much it hurts, no matter how many people have to be put on the unemployment line, because that’s the only way to kill this inflation, to...
Read More »Ben Bernanke’s Nobel Prize award rewrites the past while darkening future for a single word.
Economists have awarded their highest honor to three of their own, including the guy who was in charge of the Federal Reserve during the world's worst _______ panic in four generations. But what word fills in that gigantic blank? Identifying exactly what kind of panic it was doesn't just explain what happened fifteen years ago, it still determines our future. Eurodollar University's Money & Macro Analysis Sources featured in this video: FOMC Jan '09...
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